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Scientific Management theory

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drganizations were seeking ways to better
satisfy customer needs.
Machinery was changing the way goods
were produced.
Managers had to increase the efficiency of
the worker-task mix.
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Ãob specialization
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xraft -- each worker did all steps.
Factory -- each worker specialized in one step.
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Õach worker became very skilled at one, specific
task.
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Õvolution of Management Theory

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1940 2000
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Scientific Management
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Taylor sought to reduce the time a worker spent on
each task by optimizing the way the task was done.
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The 4 Principles
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1. Study the way the job is performed now &

determine new ways to do it.
£ ºather detailed, time and motion information.
£ Try different methods to see which is best.

2. xodify the new method into rules.

£ Teach to all workers.
3. Select workers whose skills match the rules set
in Step 2.
4. Establish a fair level of performance and pay
for higher performance.
£ Ñorkers should benefit from higher output.
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Problems of Scientific Management

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They did not allow workers to share in increased
output.
Specialized jobs became very boring, dull.
Ñorkers ended up distrusting Scientific
Management.
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The ºilbreths
ÚFrankand Lillian ºilbreth refined Taylor¶s
methods.
Made many improvements to time and motion
studies.
ÚTime and motion studies:
1. ¦reak down each action into components.
2. ind better ways to perform it.
3. Deorganize each action to be more efficient.
Úºilbreths also studied fatigue problems, lighting,
heating and other worker issues.
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dministrative Management
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 formal system of organization and administration
to ensure effectiveness and efficiency.
Ñeber developed the Five principles shown in
Figure 2.2.
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¦ureaucratic Principles
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-ey points of ¦ureaucracy

uthority is the power to hold people accountable
for their actions.
Positions in the firm should be held based on
performance not social contacts.
Position duties are clearly identified. People should
know what is expected of them.
Lines of authority should be clearly identified.
Ñorkers know who reports to who.
Dules, Standard Operating Procedures (SOPs), &
Norms used to determine how the firm operates.
£ Sometimes, these lead to ³red-tape´ and other
problems.
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Fayol¶s Principles
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1. ivision of Labor: allows for job specialization.
£ Fayol noted firms can have too much specialization leading to
poor quality and worker involvement.
2. uthority and Desponsibility: Fayol included both formal
and informal authority resulting from special expertise.
3. Unity of xommand: Õmployees should have only one
boss.
4. Line of uthority: a clear chain from top to bottom of the
firm.
5. xentralization: the degree to which authority rests at the
very top.
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Fayol¶s Principles
6. Unity of irection: dne plan of action to guide the
organization.
7. Equity: Treat all employees fairly in justice and
respect.
8. Order: Õach employee is put where they have the
most value.
9. Initiative: Õncourage innovation.
10. iscipline: obedient, applied, respectful employees
needed.
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Fayol¶s Principles
11. Demuneration of Personnel: The payment system
contributes to success.
12. Stability of Tenure: Long-term employment is
important.
13. General interest over individual interest: The
organization takes precedence over the individual.
14. Esprit de corps: Share enthusiasm or devotion to the
organization.
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¦ehavioral Management
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Suggested workers help in analyzing their jobs
for improvements.
The worker knows the best way to improve the
job.
If workers have the knowledge of the task, then
they should control the task.
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The Hawthorne Studies

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Ñorker productivity was measured at various
levels of light illumination.
Researchers found that regardless of whether
the light levels were raised or lowered,
productivity rose.
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Theory X and Y
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ATheory X: ssumes the average worker is lazy,
dislikes work and will do as little as possible.
£ Managers must closely supervise and control through
reward and punishment.
ATheory Y: ssumes workers are not lazy, want to
do a good job and the job itself will determine if
the worker likes the work.
£ Managers should allow the worker great latitude, and
create an organization to stimulate the worker.
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Theory X Ú Theory Y
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Theory Z
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åS culture emphasizes the individual, and managers
tend to feel workers follow the Theory X model.
Ãapan culture expects worker committed to the
organization first and thus behave differently than åS
workers.
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Managers stress long-term employment, work-group, and
organizational focus.
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Management Science
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ouantitative management: utilizes linear
programming, modeling, simulation systems.
Operations management: techniques to analyze all
aspects of the production system.
Total ouality Management (ToM): focuses on
improved quality.
Management Information Systems (MIS): provides
information about the organization.
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drganization-Õnvironment Theory
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The environment consists of forces, conditions, and
influences outside the organization.
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Input: acquire external resources.
xonversion: inputs are processed into goods and
services.
Output: finished goods are released into the
environment.
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Systems xonsiderations
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xlosed systems often undergo entropy and lose
the ability to control itself, and fails.
ÚSynergy:     

  
Synergy is only possible in a coordinated system.
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The drganization as an dpen System

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xontingency Theory
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The environment impacts the organization and
managers must be flexible to react to
environmental changes.
The way the organization is designed, control
systems selected, depend on the environment.
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Structures
ÚMechanistic: 
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Õmployees closely monitored and managed.
Very efficient in a stable environment.
ÚOrganic:
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Much looser control than mechanistic.
Managers can react quickly to changing
environment.